This interview was first published in China on Techweb on 22 February 2011, as well as in the People’s Daily and others.
This article was first published by Tim Bradshaw of the Financial Times on 22nd February 2011.
Powered by social networks and mobiles, Chinese video games are set to topple America’s lead as the world’s largest gaming market, according to research by Digi-Capital, a boutique investment bank.
Its new report predicts that revenue from online and mobile games will grow from a third to a half of the industry’s total revenues, at around $44bn, by 2014.
This interview was first published by Gamasutra on 22nd February 2011.
Digi-Capital, an investment bank focused on high growth digital companies, has just published its 2011 Global Video Games Investment Review (available at www.digi-capital.com or http://slidesha.re/dJwTaX). We interviewed Digi-Capital’s Managing Director, Tim Merel, about their major conclusions.
Question: From a video games investment perspective, what trends do you see?
As we anticipated in our 2010 Review, video games activity accelerated and changed fundamentally during 2010. VC games investment approached 2007 levels in 2010 in terms of funds raised, although the number of investments declined. The top 10 investments accounted for ~60% of total games investment in 2010, with a fundamental shift to online/mobile games company investments. However general VC market weakness and limited knowledge and relationships across complex, fast moving online/mobile games sectors still make generalist VC games investment challenging.
Digi-Capital’s Managing Director Tim Merel was interviewed by CCTV’s (Chinese State TV) Biz Asia program about video games investment in China, as well as Chinese games companies investing internationally. The segment gives an insight into what is driving games in China, and some of the companies focused on its rapid development. The segment can be seen here http://bit.ly/gNqtWU at 14:30 in the video.
I was grateful to be invited to the banquet in honour of Chinese Vice Premier Li Keqiang (who many feel may become the next Premier) on 11th January at the Royal Courts of Justice in London. Also attended by UK Foreign Secretary of State William Hague and Business Secretary of State Vince Cable, the impressive Chinese delegation of Government and Business representatives made a strong impression.
Vice Premier Li Keqiang spoke eloquently about China’s objectives in the forthcoming 12th Five Year Plan, and I am particularly encouraged by the increased focus on Chinese companies growing and investing internationally. Combined with plans to grow the digital creative industries’ share of Chinese GDP substantially, this appears to represent a clear endorsement of Chinese digital companies’ domestic and international growth potential. From direct discussions with high growth Chinese digital companies, it is an opportunity which they are pursuing very seriously.